03/10/2011 (Reuters) - Indonesian palm oil firm Musim Mas plans to invest $860 million in its downstream businesses in Southeast Asia's largest economy, the company's executive said on Friday.

"In the next three years we plan to invest $860 million on the industry in several regions in Indonesia such as in North Sumatra, Riau, West Sumatra and Central Kalimantan," General Manager Suhardi L told reporters.

Musim Mas will build a series of palm oil downstream industries, which will produce vegetable oil, shortening, margarine, biodiesel, oleochemical and specialty fat, he added.

Indonesia, the world's top palm oil producer, has an export tax system that aims to boost downstream industries, secure domestic supplies and reduce volatility in cooking oil prices. the country recently changed its export taxes to make refined products more attractive.

"Formerly, we planned to invest outside Indonesia, in China for instance," Suhardi said. "However, we change the plan and divert all our investments abroad, to Indonesia because Indonesia is really promising now with attractive incentives and policy."